Nifty settles above 24,700 in rangebound trade, midcaps outperform

Markets Hold Steady as Nifty Ends Above 24,700

In a cautious yet resilient trading session on Wednesday, the benchmark Nifty 50 settled above the psychological mark of 24,700, supported by selective buying in midcap stocks and investor optimism ahead of crucial macroeconomic data. The broader market, particularly Nifty Midcap 100, stole the spotlight with strong gains, outperforming large-cap indices in an otherwise muted session.

The Nifty 50 closed at 24,723.15, gaining 45.85 points or 0.19%, while the Sensex ended 125.55 points higher at 81,109.47. The Nifty Midcap 100 index surged nearly 1.3%, signaling sustained investor interest in quality mid-tier companies.

Rangebound Trading Reflects Cautious Optimism

The trading day witnessed tight movement in benchmark indices as investors refrained from aggressive bets ahead of key economic data releases, including India’s industrial output and inflation figures, due later this week.

"Despite a narrow trading range, the underlying market sentiment remains constructive," said Amit Goel, Chief Strategy Officer at Pace Capital. "Investors are cautious due to the upcoming CPI and IIP numbers, but the consistent flow into midcaps reflects selective bullishness."

Market participants also remained mindful of global cues, with Asian markets exhibiting mixed trends amid uncertainty around US interest rate trajectory and geopolitical developments.

Midcaps Lead the Charge

Midcap stocks extended their outperformance streak, with buying seen across sectors like capital goods, auto ancillaries, and consumer durables. Notable gainers in the midcap space included TVS Motor Company, Trent Ltd, and Crompton Greaves Consumer Electricals, each rising between 3% and 5%.

"The shift toward midcap stocks indicates that domestic liquidity remains robust and retail participation is rising," noted Neha Gupta, Fund Manager at Indrise Mutual Fund. "These companies offer better earnings visibility and are not as heavily influenced by global volatility."

Sectoral Performance Mixed

The sectoral performance on the National Stock Exchange (NSE) was mixed, reflecting a lack of uniform direction:

• Gainers:

  • Nifty Auto rose 1.2%, aided by strong performance in two-wheeler and EV segments.

  • Nifty Realty advanced 0.8% as investors bet on improved housing demand.

  • Nifty FMCG edged up by 0.4%, continuing its defensive charm amid inflation concerns.

• Laggards:

  • Nifty IT slipped 0.6% as the rupee appreciated slightly and global tech sentiment softened.

  • Nifty Bank ended flat to negative amid volatility in PSU banking names.

  • Nifty Metal remained under pressure due to weak global commodity prices.

Market Breadth and Volatility

Market breadth remained firmly in favor of bulls with 1,328 stocks advancing and 836 declining on the NSE. The India VIX, a gauge of market volatility, edged lower by 2.1% to 11.07, indicating relative calm among traders despite looming macro triggers.

Technical Outlook: Nifty Eyes Further Upside

Technically, the Nifty 50 has managed to close above a key support level and is now eyeing the 24,800–24,850 zone as the next resistance band. Analysts see this consolidation phase as healthy before a potential breakout.

"Today’s rangebound trade is a sign of base-building near highs. If Nifty sustains above 24,750 for two consecutive sessions, we may see an attempt toward 25,000 in the coming days," said Ravi Singh, Head of Technical Research at ShareIndia.

However, failure to hold current levels may drag the index back to the 24,500 support level.

Global Markets Remain Uneven

Globally, equities in Asia offered a mixed performance, with Japan’s Nikkei 225 gaining 0.3% and China’s Shanghai Composite falling 0.5% amid investor concerns over weak trade data. US futures traded flat ahead of the release of May non-farm payroll data, keeping global sentiment on the edge.

Investor Outlook: Eyes on Data and Policy Cues

Investors remain largely optimistic about the Indian growth story, but near-term movements will depend on domestic data points and signals from the upcoming US Federal Reserve meeting next week.

“With general elections concluded and a pro-reform government expected, market sentiment is strong,” remarked Vikas Jain, senior research analyst at Reliance Securities. “But we need to watch inflation and global bond yields for near-term direction.”

Analysts advise a stock-specific approach, especially in midcaps and select large-cap sectors like auto, capital goods, and consumption, while maintaining a balanced view in high-beta segments like IT and metals.

Despite a relatively quiet session, the Indian stock market demonstrated resilience as the Nifty 50 ended above 24,700, backed by strong midcap buying and sectoral rotation. While global uncertainty and macro data may keep near-term volatility elevated, the underlying trend suggests that investors are betting on India’s long-term growth narrative.

As the market awaits inflation and industrial output data, along with global cues from central banks, the coming sessions could be pivotal in determining whether Nifty breaks out toward the coveted 25,000 mark.